The federal government is marshaling all its resources to help nonbanks with MBS obligations stay liquid. For now, the effort appears to be working but new brush fires are popping up.
The secondary market for orphaned non-QM assets is thriving. This includes both whole loans and even securitizations. The biggest question for buyers: Has a floor been established yet?
Mortgage-related real estate investment trusts, including Redwood, have been hit hard by a wave of margin calls due to drastic declines in the value of their MBS. Redwood said it has met its margin calls so far.